Savings Impact Model 2014 |

SIM

The Savings Impact Model (SIM) summarizes the potential financial impact that U.S. Postal Service Office of Inspector General (OIG) audits could have on the Postal Service. The Postal Service is in the process of implementing some of the initiatives the OIG has recommended in audits it has conducted from 2007 to the present, but some require congressional action.

Implementing these initiatives can help the Postal Service decrease or eliminate their financial shortfall and could allow them to reinvest in infrastructure and technology, improve service, or reduce prices. If the Postal Service could turn a profit of $1.6 billion, postal prices could be reduced by one cent for all mail classes.

This model presents the results of certain OIG audit reports that identify opportunities for decreasing costs and increasing revenues. When determining the impact of our audit recommendations, we consider both the potential cost savings and/or revenue increases and the cost of implementation. However, the actual impact achieved will vary based upon the extent of implementation as well as the actual implementation approach. While we do not duplicate cost savings or increased revenue predictions in our audit reports, aggregating the impact from multiple audit reports could exaggerate potential cost savings and/or revenue increases.